The single most important decision you will make with your Real Estate Professional is determining the right asking price for your property. Setting a realistic price for your home that reflects current market values will help sell your home quickly and for top dollar.
Insisting on achieving a certain price for your home is very common scenario I encounter when my clients wish to sell their homes. Too many times home-sellers let emotions influence their asking price, drawing from numbers based on the price paid for the house originally, or the amount of money they've invested in improvements. Sounds reasonable, unfortunately the market sets the price not our wishful thinking or any other factors.
So why is setting a realistic price that is at market value so important? Why not just start with higher price so there is room to negotiate? Or why not start with really low price to generate multiple offers? Both strategies fail simply because people don't bother looking at overpriced homes, nor underpriced ones!
The buyers who have just started the process of looking for a home may see your property as they are still collecting information and narrowing down their budget, however they are not ready to buy your house. Typically buyers take between 4 to 8 weeks to build confidence and clarify their own needs. By the time a serious buyer is ready to make an offer, they will have already seen all of existing properties for sale, and they are waiting to see only the new listings as they come up for sale - Listings that are in their now narrowed down price range. If your home is priced significantly higher than market value, prospective buyers interested in your style of home will reject it for larger homes listed at the same price. And, those buyers who do see your house may have significantly higher expectations than what you have to offer. Driving prospective buyers away will increase the amount of time your home stays on the market, which raises an additional red flag for buyers. They become suspicious of the reasons your home has not sold, thinking, "if no one else has bought it, there must be something wrong with it." Even though there may be nothing wrong with your home other than unrealistic price, it will eventually develop a stigma. By the time you decide to drop the price, it is already too late, as you have just missed the critical first few weeks after listing when the number of prepared buyers who will see your home is at it’s peak.
On the other hand, pricing your home too low could result in selling your home for much less than it's worth. The bottom line: when you price your home properly, you increase the chances that the offer you receive will match your asking price, and that there will be competing offers which may net you even more in the long run.
My job is to help you set a realistic pricing strategy appropriate for the market conditions so that your home sells quick and for top dollar. Through a process known as a Comparative Market Analysis (CMA), I use my expertise to analyze what comparable homes have historically sold for in your neighbourhood/building. This process is generally considered the most effective method of determining what potentials buyers will be will be willing to pay for your home. A key part of the CMA is knowing how much to subtract or add for such variables as size, style, location, condition, and current state of the market (is it a buyer's or seller's market)? Real estate is very local so it’s critical for sellers to choose a realtor that specializes in their area and type of home they are selling. They will always more accurately be able to price your property than someone that is selling every type of property all over the city. They can easily place value on those unique features you may or may not find comparables for such as desirable layout, a terrace, or particular view. They know what kind of demand there is for a home just like yours and how fast they can sell it.
The Benefits of Pricing Right:
Visit my online Home Evaluation form that will give you an initial idea of your home's market value.
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